Monday, June 27, 2016

What Brexit Really Means

With the votes counted and the results in, the United Kingdom
(UK) is heading out of the European Union (EU). Known widely as the Brexit, there
are now fears that the UK‘s upcoming divorce will hurt the country’s booming
economy.

My view on this is that the fears are overblown.

In the
short run, there may be problems as everyone adjusts to the new reality but in
the long run; I think the UK will do just fine. I mean let’s be serious here. The UK has been a kingdom for
centuries. They have been in the EU for what…2 decades? The UK will survive
Brexit just fine. The EU however will have a major problem with the result.

The simple fact is that the EU just isn’t that attractive
right now. The refugees’ crisis last year was one the EU failed to handle. Outside
that, there is the long simmering economic crisis in Greece, Spain etc. and the
tension the EU has with Russia. So I can’t say I’m all that surprised the
British public chose to leave the EU. They are not alone in this. Others are also hoping to do so.

Already there are calls in
France and Holland to leave the EU and Turkish President Recep Tayyip Erdogan said
that Britain's planned departure from the European Union is the "beginning
of a new era". That’s a problem for the EU.

So don’t worry about the UK. They will eventually do fine
with Brexit. For the EU however…